On 1 January 2016,Sky-High Ltd Acquired 100 000 Shares (30

On 1 January 2016,Sky-High Ltd acquired 100 000 shares (30 per cent of the voting interest) in Down Ltd for $600 000 cash.On 30 June 2016,Down Ltd announced its earnings per share for the first six months of 2016 at $1.50 per share.On 20 November,Down Ltd paid dividends to shareholders at $0.90 per share.On 31 December 2016,Down Ltd announced its earnings per share for 2016 at $2.80 per share (i.e. ,$1.30 additional since 30 June) .
- If Sky-High Ltd used the equity basis,which of the following accounting records would it make on 31 December 2016 in response to Down Ltd's earnings announcement?

A) It would increase investment in Down Ltd by $130 000.
B) It would increase cash by $130 000.
C) It would increase dividend revenue by $130 000.
D) It would increase investment in Down Ltd by $130 000 and increased dividend revenue by $130 000.